VIDA: AI-Based Fraud Cases In The Financial Sector Soared 1,550 Percent

Victor Indajang, Chief Operating Officer VIDA (photo: VIDA)

JAKARTA - In The 6th Indonesia Fintech Summit & Expo (IFSE) 2024 with the theme "Technology Convergence: Sharing the Future of Finance and Beyond," VIDA revealed a significant increase of 1,550% in cases of artificial intelligence-based fraud (AI) in the Indonesian financial sector.

This drastic increase emphasizes the urgency for the financial industry to immediately take proactive steps to protect businesses and consumers from increasingly complex threats.

"The surge in AI-based fraud cases is a firm warning for all of us. If it is not handled immediately, the financial and reputational losses incurred will be even greater," said Victor Indajang, Chief Operating Officer VIDA.

Victor also appealed to all financial industries to continue to adapt and strengthen their defenses against these threats. Because according to him, AI-based fraud includes various advanced methods, including:

Deepfake and AI-Based Fraud: Cybercriminals are increasingly using deepfake technology to create realistic videos, audio, and fake images.

Misuse of this technology increases 700% globally, allowing perpetrators to disguise themselves as other individuals or manipulate verification systems, posing significant security risks.

Account Takeovers (ATOs): 97% of businesses in Indonesia report facing account takeover attempts, often due to credentials stolen via phishing and data breaches.

Of these cases, 76% resulted in unauthorized transactions or data breaches that undermine the company's financial stability and reputation.

Synthetic Identity Fraud: Perpetrators use deepfake technology or manipulated data to create synthetic identities.

A total of 56% of businesses in Indonesia experience this type of fraud. Financial institutions must strengthen biometric verification and adopt AI-based fraud detection to ward off this risk.

VIDA calls on all financial industry players to immediately adopt advanced technology in an effort to protect themselves from the threat of AI-based fraud.

"Collaboration between the private sector, government and regulators is needed to build a safe and trusted financial ecosystem for all parties," concluded Victor.